Since the concept of decentralized currencies was introduced, the word has often been considered synonymous with bitcoin. Despite more than 10,000 cryptocurrencies circulating in the market, the laurels and a claim that bitcoin enjoys is unparalleled. The high value and the market position of bitcoin make it one of the most valuable digital assets.
Every investor, whether new or a seasoned player, wishes to invest in cryptocurrencies and has a major share in bitcoin. However, there are certain apprehensions surrounding it. The recent dip in the pricing of cryptocurrencies, including bitcoin, has again raised the conversation on whether Bitcoin is going to last or not. Well, in this informative article, we will highlight why you should consider investing in bitcoin as a positive move in your investment portfolio.
What You Need to Know Before You Invest in Bitcoin
The question that most investors are asking nowadays is whether they should be investing in bitcoin or not. Well, several provisions need to be followed when it comes to cryptocurrency investment. Undoubtedly, researching and understanding the crypto market is the first step. If you compare the crypto market with the stock market, you will understand that the risk is always there.
It is to be noted that any sort of investment has risk factors associated. Hence you cannot completely undermine the risk factor. When it comes to Bitcoin investment, there are certain important points to note which are as follows-
- The first digital decentralized currency– In history, whenever we talk about one of the biggest financial revolutions, we have to mention bitcoin. With the introduction of bitcoin, the world got to know about peer-to-peer networking and transactions without any governance. Oh, bitcoin enjoys the position of being a pioneer in cryptocurrency.
- The mining process: Bitcoin into circulation, the miners get into the process of adding new blocks to the system. This is done by solving some complex mathematical problems. Solving these complex mathematical problems can add to the complexities and require a lot of energy and resources. Hence, it increases the cost of mining and positively impacts the value of bitcoin. The minor who can achieve the result first gets the benefit and can get a reward in the form of bitcoin.
- Growing acceptance of Bitcoin– Another reason that bitcoin is not going anywhere is the rising acceptance of bitcoin payment. When it started its journey, it was valued at dollar one, and today the value of bitcoin has increased to more than US$30,000. Despite the dip in this cryptocurrency’s value, around 15,000 companies across the globe accept bitcoin as payment. Please include some big names like Overstock, Microsoft, Tesla, MicroStrategy, Wikipedia, and others.
5 Tips For Investing In Bitcoin The Right Way
While much has been talked about investment in cryptocurrency and bitcoin, there has been a sudden dip in the value of bitcoin. A similar trend was also observed in other cryptocurrencies, but the bitcoin’s price drop has garnered a lot of attention. Presently it is trading at $1.20 thousand. Which is very less than what it was last year in November 2021.
- Sudden rise in the interest rate in the US and UK, pushing people to sell away the risky asset. Since bitcoin is quite new in the market, people consider it risky, and hence there has been a downfall in the value of bitcoin.
- There are rumors that Russia can ban cryptocurrency trading and mining, causing the price to fall.
- Growing regulation on cryptocurrency investment is also one of the reasons for the downfall in the price of the cryptocurrency.
Conclusion
If you are convinced and confident that investing in bitcoin or any other cryptocurrency is going to be profitable for you, then this is the right time to start investing. Choosing the right trading platform is equally important here; hence, you must emphasize researching more about the crypto exchange platform.
There are several online portals wherein you can get a detailed review of a crypto exchange platform. So, before choosing any such platform, make sure that you check the crypto exchange platform and assess it in-depth before registering.
